TERF facility offered under Imran govt : NA panel asks SBP for list of 600 people who got $3bn loans at zero markup

ISLAMABAD: The National Assembly’s Standing Committee on Finance was told on Thursday that $3 billion were given out as interest-free loans in the last government’s tenure.

The revelations were made in a meeting of the committee which State Bank of Pakistan (SBP) Deputy Governor Dr Inayat Ullah also attended. The committee chairman said that the loans were issued by the SBP and claimed that the bank had a list of people the money was given.

Ruling party MNA Barjees Tahir raised the issue and sought to furnish details of 600 borrowers who secured such facility. However, the deputy governor said that the loans were issued by commercial banks under the Temporary Economic Refinance Facility (TERF) during the Covid-19 pandemic.

He also added that the loans had been given to the business community because investment had dipped during the pandemic.

Dr Nafisa Shah also asked the deputy governor to provide the terms of the loans that had been given but he declined, saying that the information was confidential and banks are bound to keep it secret.

State Minister for Finance Aisha Ghaus Pasha said that the details could be revealed in an in-camera session. Committee Chairman Qaiser Sheikh, therefore, directed the deputy governor to give a detailed briefing on the matter.

On the occasion, Forex Dealers Association’s Chairman Malik Bostan said that the biggest problem of the country was a scarcity of dollars and said that they came up to help the government in this regard through an agreement.

Such an arrangement was done in 1998 after the country faced a similar challenge following the nuclear explosions. He said that they were giving $400 million each month and could increase the amount up to $1 billion besides providing dollars to the general public. Pakistan is not getting compensation for being a calamity-hit country and has so far received only $800 million out of the total pledges made by the donors.

Later, Minister of State for Finance Dr Aisha Ghaus Pasha, talking to reporters after attending the National Assembly’s Standing Committee on Finance meeting here at the Parliament House, confirmed that the IMF has indicated to Pakistan additional deposits of $2 billion from the Kingdom of Saudi Arabia, helping Islamabad for moving towards the Staff Level Agreement with the Washington-based lender. “Now we are waiting for confirmation from the UAE on the deposit of $1 billion,” Pasha said.

She said that the minister for finance was dealing with the UAE high-ups about an additional deposit of $1 billion. There are some other minor glitches in the way of signing the Staff Level Agreement, she added, hoping that it would be done soon.

When asked to comment on Dar’s comment with regard to getting rid of the IMF by standing on our own feet, Pasha replied that there was no other option but to revive and implement the Fund-sponsored programme.

She said that the IMF’s demand for pursuing structural reforms was in the interest of Pakistan. “What is wrong when the IMF asks us for living within our means,” she added.

The IMF is asking for structural reforms for increasing exports and tax revenues, she said and added that the country was committed to reviving the IMF programme.

When asked about the Pakistani delegation scheduled for attending IMF/WB spring meeting in Washington, she said that the finance minister would be leading the delegation. About cross-fuel subsidy, she said the IMF was seeking more details on a frequent basis.

Separately, Pakistan made a fresh request to the United States for playing its role to convince the International Monetary Fund (IMF) for reviving the stalled loan programme. Minister for Finance Ishaq Dar on Thursday made a third request to the US ambassador to Pakistan for helping Islamabad for restoring the IMF programme.

The IMF’s existing Extended Fund Facility (EFF) might be extended for some months because the Fund did not allow the government to a spending spree which might result in further jeopardising the macroeconomic stability. The IMF programme might be extended to the completion of the incumbent regime’s tenure. After the general elections, the new government would be required to go for a fresh bailout package from the IMF.

According to a Ministry of Finance statement issued on Thursday, US Ambassador Donald Blome called on Ishaq Dar. Welcoming the ambassador, the finance minister said Pakistan shared deep-rooted, historic and durable bilateral relations with the United States on economic and trade fronts.

He briefed the envoy about the economic outlook of the country and the challenges being faced. He further shared with the ambassador the pragmatic policy decisions being taken by the government to arrest the economic decline and to steer the economy towards a positive trajectory leading to economic stability and growth. The minister also informed the envoy on the progress in talks held with the IMF and reiterated the commitment of the government to complete the programme.

Donald Blome expressed confidence in the policies and programmes of the government being taken for the economic sustainability of the country and the socio-economic uplift of the masses.

He extended his support to further promote bilateral economic, investment and trade relations between both countries.

The two sides also exchanged views on matters of common interest and showed their interest in enhancing the existing bilateral relations between the two countries. They also talked about various economic avenues to further strengthen bilateral ties.